Berkshire Makes Big Energy Bet

(BRK.A), (BRK.B)

Warren Buffet is making big bets that the world’s future energy needs will mean big profits for Berkshire Hathaway.

Buffet Ready to Spend Billions

Speaking at the Edison Electric Institute’s annual convention in Las Vegas, Warren Buffett enthusiastically trumpeted Berkshire’s commitment to renewable energy.

“We’ve poured billions and billions and billions of dollars in retained earnings, and several billion of additional equity, Buffett said. “And we’re going to keep doing that as far as the eye can see.”

Berkshire has already poured $15 billion into acquiring energy companies and Buffet declared “There’s another $15 billion ready to go, as far as I’m concerned.”

Berkshire Hathaway’s Berkshire Hathaway Energy has been aggressively acquiring assets, including last year’s $5.6 billion purchase of NV Energy, and this April’s $2.9 billion purchase of Canadian company AltaLink from SNC-Lavalin Group Inc. (TSX:SNC).

A Growing Energy Portfolio

Berkshire Hathaway Energy currently has $70 billion in assets, including one of the largest portfolios of renewable energy in the world.

Total revenues in 2013 were $12.6 billion, with the total generation capacity owned and contracted exceeding 34,000 MW. 25% of this energy was produced from renewable or noncarbon sources.

Berkshire Hathaway Energy’s combined subsidiaries provide energy to 8.4 million customers and end-users.

© 2014 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.